HomeMy WebLinkAbout08 GDWATER RECOVERY 04-15-96NO. 8
4-15-96
DATE:
APRIL15,1996
Inter-C'om
TO:
FROM:
SUBJECT:
WILLIAM A. HUSTON, CITY MANAGER
PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION
AMENDMENT TO GROUNDWATER RECOVERY PROGRAM AGREEMENT
WITH METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA
RECOMMENDATION
That the Tustin City Council, at their regularly scheduled meeting on April 15, 1996, approve the First
Amendment to Agreement No. 3907, Tustin Desalter Joint Participation Agreement For Recovery and
Utilization of Contaminated Groundwater between Metropolitan Water District of Southern California,
Municipal Water District of Orange County, Orange County Water District, East Orange County
Water District and City of Tustin (Groundwater Recovery Program).
FISCAL IMPACT
No fiscal impact.
BACKGROUND
On February 18, 1992 the City Council approved an agreement with Orange County Water District for
construction, operation, and purchase of a groundwater desalter plant at the City's Seventeenth Street
yard. Subsequently, on October 5, 1992 the City Council approved the initial Groundwater Recovery
Program Agreement with the above agencies. The Agreement insured that the cost of water produced
by the Seventeenth Street Desalter plant, including maintenance, operations and capital, would not
exceed the cost of water that the City would alternately have to purchase from Metropolitan Water
District (MWD).
The original Groundwater Recovery Program Agreement prescribed a complicated billing/credit
process under which the City would invoice MWD for the full cost of producing the water. MWD
would then issue a check for the full cost to the City, and then in mm invoice the City through
Municipal Water District of Orange County (MWDOC) and East Orange County Water District
(EOCWD) for the water at the current MWD rates. The City would retain the difference between the
amount invoiced to MWD and the amount billed back to the City through MWDOC/EOCWD.
The proposed amendment simplifies the process to allow MWD to issue a credit for purchased water
to MWDOC, which will then be passed down through EocWD to Tustin.
DISCUSSION
The Seventeenth Street Desalter project is in the final stages of construction. Instrumentation and
computer control programs are being fine tuned, and it is anticipated that the start-up and final testing
will occur during the second or third week of May. With construction costs being nearly finalized, it
can be projected that the project water cost will be about $495 per acre foot compared to the current
MWD rate of $426 per acre foot. This will result in'an MWD subsidy to the City of about $69 per
acre foot.
,
Amendment To Groundwater Recovery Program Agreement With Metropolitan Water District Of
Southern California
When completed the plant will provide a local supply over Which the City has greater control, and
which will not be subject to cutbacks or shortages. It will also clean up nitrate and salt contamination
in the area, retard the spread of the nitrate plume, and prevent the degradation of water quality in other
wells.
Tim D. Serlet
Director of Public Works/City Engineer
Water Services Manager
THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA
FIRST AMENDMENT TO AGREEMENT NO. 3907
TUSTIN DESALTER PROJECT JOINT PARTICIPATION AGREEMENT
FOR RECOVERY AND UTILIZATION
oF CONTAMINATED GROUNDWATER BETWEEN
THE METROPOLITAN~WATER DISTRICT OF SOUTHERN CALIFORNIA,
THE MUNICIPAL WATER DISTRICT OF ORANGE COUNTY,
THE ORANGE COUNTY WATER DISTRICT,
THE EAST ORANGE COUNTY WATER DISTRICT,
AND THE CITY OF TUSTIN
This first amendment to Agreement No. 3907, hereinafter
referred to as First Amendment, is entered into as of
, 1996, among THE METROPOLITAN WATER DISTRICT OF
SOUTHERN CALIFORNIA, a public agency of the State of California,
organized and existing under the Metropolitan Water District Act
of the State of California, hereinafter referred to as
Metropolitan, THE MUNICIPAL WATER DISTRICT OF ORANGE COUNTY,
hereinafter referred to as MWDOC, ORANGE COUNTY WATER DISTRICT,
hereinafter referred to as OCWD, the EAST ORANGE COUNTY WATER
DISTRICT, hereinafter referred to as EOCWD, and THE CITY OF
TUSTIN, hereinafter referred to as Tustin.
Explanatory Recitals
1. There is now in effect between the parties a
joint participation 'agreement for recovery, treatment and
utilization of contaminated groundwater dated December 8, 1992,
hereinafter referred to as Agreement.
2. In order to simplify payment procedures and provide a
more uniform accounting method for payment of invoiced Recovered
Groundwater, the parties desire to amend the Agreement with this
First Amendment.
3. NOW THEREFORE, in consideration of the mutual covenants
contained in the Agreement and this First Amendment, the parties
agree as follows:
Purchase of Allowable Yield
1. Sections 10.3 and 10.4 are revised to read as follows:
10.3: Payment by Metropolitan. Metropolitan shall pay
Tustin for invoiced Recovered GroundWater no later than the date
on which MWDOC's payment to Metropolitan is due pursuant to
Subsections 11.1 and 11.3. Payment shall be provided by check to
Tustin or by credit to MWDOC on Metropolitan's next water
delivery billing to MWDOC.
10.4: Date of Sale. Invoiced Recovered Groundwater
shall be deemed sold to Metropolitan as of the date of
Metropolitan's payment to Tustin, or as of the date of MWDOC's
receipt of credit from Metropolitan, as the case may be, pursuant
to Subsection 10.3.
EXcept as ~hereby amended, the Agreement shall remain in
full force and effect.
·
-2- Agreement No. 3907
IN WITNESS WHEREOF, the parties have hereunto affixed
their names as of the day and year hereinabove first written.
ACCEPTED AS TO FORM:
'N. Gregory Taylor
THE METROPOLITAN WATER DISTRICT
OF SOUTHERN CALIFORNIA
By:
Deputy General Counsel
ACCEPTED AS TO FORM:
By:
Debra Man, Chief
Planning and Resources
THE MUNICIPAL WATER DISTRICT
OF ORANGE COUNTY
By: By:
Title'
·
ACCEPTED AS TO FORM:
Title:
THE ORANGE COUNTY WATER DISTRICT
By: By:
Title:
ACCEPTED AS TO FORM:
Title:
THE EAST ORANGE COUNTY
WATER DISTRICT
By:
Title:
ACCEPTED AS TO FORM:
By:
Title:
DC3907/AGREE
By:
Title:
THE CITY OF TUSTIN
,.
By:
Title:
-3- Agreement No. 3907